Malaysia's IOI Properties Group Bhd said it had applied for regulatory approval to issue Islamic bonds worth 1.5 billion ringgit ($463.3 million) to repay existing loans and fund land development and other investment.

IOI Properties, Malaysia's second-largest real estate developer by market value, said in a stock exchange filing it had submitted its application to the Securities Commission on Friday.

The bond, or sukuk, will have a tenure up to 15 years from the first issuance date, the company said, adding that the first 750 million ringgit raised will be used to refinance a loan owed by subsidiary IOIP Capital Management Sdn Bhd to Malayan Banking Bhd

The rest of the proceeds will be utilised to "finance land and development costs, any incidental costs, investment and working capital requirements of IOI Properties Group and its subsidiaries," the firm said.

Maybank Investment Bank is the principal adviser, lead arranger and lead manager for the sukuk programme.